Australian Dollar Continues to Surge

This is not good for any Americans moving money from US to Australian banks:

THE Australian dollar surged past 91 US cents today to touch a fresh 23-year high as speculation of an interest rate rise continued to mount.

Australians planning an overseas holiday are set for even better deals, with the domestic currency expected to soon pass 92 US cents.

But they may have to wait to take advantage of cheaper prices on imported goods.

Inflation data out this week has convinced economists the Reserve Bank of Australia (RBA) will lift interest rates to their highest level since July 1996, after the board meets on Melbourne Cup Day in November.

In the US, where the housing sector continues to be affected by problems in the sub-prime mortgage market, interest rates are expected to fall by the end of October. [AAP]